As part of our partnership with Tim and Dave at Trusted Lending Advisors, I’ve asked Tim to share some information about things to look at to make sure you are getting the best deal on your mortgage.
I want to get the best deal on my mortgage. Is there anything that I should look at other than just who can give me the lowest interest rate?
Absolutely! First of all, it’s important to remember that just like with anything else in life, there’s no such thing as a “free lunch” in the mortgage business. Many Springs Bargains readers have probably been bombarded with mailers, phone calls and TV ads touting “low or no cost” loans (especially for refinances), and unfortunately the majority of these ads are confusing if not downright misleading. The APR (Annual Percentage Rate) that all lenders are required to disclose when advertising interest rates is designed to help a consumer to quickly determine the “true cost” they are paying for a particular interest rate on a specific loan amount.
For example, most of the TV ads you’ll see from Quicken Loans, Ditech, Lending Tree, etc will flash a very low rate on the screen, but with a much higher APR noted below. This is because with most of these lenders/programs a consumer would normally be paying much higher fees for the lower rate in the form of extra Origination or Discount fees (commonly known as “points”) to buy-down their rate to the lower advertised level, which in the vast majority of cases is not the best way to structure a new loan.
So, it’s not just the rate that matters, but what you pay for a specific rate that really counts. We take a very mathematical approach and look at 2-3 options for each client to maximize their benefit with a new loan via the ideal blend of low rate and low fees. We normally find that in the current low-rate environment paying 0 points/origination fees makes the most sense, and we calculate a clear-cut break-even period for every client on a refinance (we like to see a 1-3 year break-even period), and on every purchase loan we consider what loan structure will maximize the client’s long-term savings, provide them with the best monthly payment, and keep their closing costs low.
Finally, we look at other variables such as monthly mortgage insurance (MI) vs. a one-time Mortgage insurance premium (if applicable), and compare various loan programs (Conventional, FHA, VA, down-payment assistance options) and different loan terms (15, 20, 30-year loans) to make sure that each client receives the optimal plan for their needs.
If you are considering purchasing a home or refinancing, I’d love to have you talk to Tim and Dave at Trusted Lending Advisors! My husband-the-Realtor, Jeremy, works frequently with Tim and Dave and his clients always have a great experience. You can call Trusted Lending Advisors at 719.266.8183 or contact them through their website. Be sure to mention that you heard about them from Colorado Bargains, and you’ll be able to receive a lender credit for your appraisal (up to $400 value) on any closed loan transaction!
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